Tim: THAT'S THE SCENE IN SOUTHFIELD, TIM PAMPLIN, LOCAL 4. Devin: BOY, WHAT A MESS! WE'RE FINALLY GETTING A LOOK AT KEVYN ORR'S BLUEPRINT TO GET DETROIT OUT OF CHAPTER 9 BANKRUPTCY. Carmen: IT'S CALLED THE PLAN OF ADJUSTMENT AND LAYS OUT WHERE AND HOW DEEP THE CUTS WILL BE AND HOW CREDITORS WILL BE PAID. THE FILING HAS PROMPTED A REACTION. Devin: FIRST, THE MEAT OF THE PLAN. BUSINESS EDITOR ROD MELONI HAS BEEN POURING OVER ALL OF THE DOCUMENTS WITH A HIGHLIGHTER IN HAND. WHAT HAVE YOU FOUND SO FAR? Rod: IT'S -- WE'RE TRYING TO UNDERSTAND THIS HERE. THE DISCLOSURE, 440 PAGES. AND THE PLAN IS 120 PAGES AND IT LAYS OUT HOW THEY WANT TO MOVE FORWARD. LET'S LOOK AT THE NUTS AND BOLTS ON THIS THING BECAUSE THERE WILL BE A BIG NEGOTIATION AND RETIREES ARE GETTING HIT AND HIT HARD. OUR PLAN IS REASONABLE. WE THINK IT IS FEASIBLE. Rod: KEVYN ORR WAS PROUD OF THE WORK HE AND HIS TEAM DID, BUT IT'S RIPE WITH RETIREE LOSSES, EXPECT A 34% PENSION CUT. SO IF YOU GET THE AVERAGE $19,000 A YEAR OR $1584 A MONTH, YOU'LL GET $1045 A MONTH. . Rod: THERE'S A LOT OF CASH BEHIND ALL OF THIS. $820 MILLION FROM THE DIA FOUNDATION FUNDS IN THE STATE, BUT THERE'S CONSIDERABLE FRUSTRATION AMONG BOND HOLDERS ONLY GETTING 20 CENTS ON THE DOLLAR UNLIKE PENSIONERS. HE TOLD THE BANKS, SHOULD THEY FIGHT TO TAKE ALL OF THE $820 MILLION, ALL OF THE MONEY DISAPPEARS FROM THE TABLE. RAY REYNOLDS GRAVES SAID WHILE EVERYONE IS SUPPOSED TO BE TREATED THE SAME -- THE BANKS MAY NOT BE HAPPY THEY'RE GETTING LESS OF A PERCENTAGE PAYOUT, IF THAT'S THE WAY IT WORKS, THAN THE PENSIONERS ARE, BUT THERE MAY BE REASONS TO GO AHEAD AND FAVOR THE PENSIONERS OVER THE BANKS TO GET THEIR VOTES TO MAKE IT WORK. Rod: AND THAT'S HOW ALL OF THIS WORKS. IT'S A VOTE IN THE END. EVERYBODY HAS TO AGREE TO THE PLAN. AND THIS IS JUST THE FIRST DRAFT. THIS IS GONNA GO ON ALL SUMMER. IT'S GONNA TAKE A LOT OF EFFORT TO GET EVERYBODY ON THE SAME SPOT.

DETROIT -

Detroit's emergency manager filed a plan Friday to restructure the city's $18 billion debt by making cuts to pensions and creditors while offering a blueprint for emerging from the largest municipal bankruptcy in U.S. history.

An early draft of state-appointed Emergency Manager Kevyn Orr's plan called for city pensioners to receive $4.3 billion in payments and bondholders about $1.1 billion during the next 40 years. That draft also detailed plans to help pensioners keep more of what they are owed by using state and private funds to protect against the sale of city-owned art at the Detroit Institute of Arts.

"My advisers and I have now expended many months in negotiations, including within Bankruptcy Court-mandated mediations, with all classes of creditors to get to this point, and we are satisfied with the progress made thus far," Orr said in a statement. "However, there is still much work in front of all of us to continue the recovery from a decades-long downward spiral. We must move swiftly to emerge from bankruptcy so that the financial distress harming the City can end."

The plan still faces numerous obstacles. Most aspects are still being negotiated in mediation sessions with stakeholders.

"The proposed plan of adjustment is a gut punch to Detroit city workers and retirees," said AFSCME Council 25 President Al Garrett. "The plan essentially eliminates health care benefits for retirees and drastically cuts earned pension benefits. Retires cannot survive these huge cuts to the pensions they earned. The plan is unfair and unacceptable."

Garrett said his union would "fight for a more just result."

Court appeals are all but certain even after the final version is approved in bankruptcy court.

The early draft included the possible spinoff of the city's Water and Sewerage Department to a regional authority. The city would receive $47 million annually under a lease deal.

Orr included in his early draft a promise of millions of dollars from foundations, the state and the Detroit Institute of Arts to prevent any possible sale of city-owned pieces in the museum to bolster at-risk pensions.

The city also would establish a voluntary employees' beneficiary association that would provide health care benefits to retirees.

Orr had hoped creditors would sign off on the plan before he submitted it to U.S. Bankruptcy Judge Steven Rhodes. But the clock was ticking because Rhodes had set a March 1 deadline. Nevertheless, with negotiations ongoing, changes are expected.

Orr has said the city's debt is at least $18 billion. About $6 billion is Detroit Water and Sewerage Department debt, which is secured by water bill payments. An additional $12 billion is unsecured, meaning it's not covered by a revenue stream. That includes about $2 billion in general obligation bond debt, $5.7 billion in unfunded retire health care obligations and $3.5 billion in unfunded pension liabilities.

Pension officials have disputed that figure.

Copyright 2014 by ClickOnDetroit.com. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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